The Company enters into contracts in the normal course of business with CROs for preclinical studies and clinical trials. These agreements provide for notice of termination by either party and are, therefore, cancelable contracts.

From time to time, the Company may be subject to various legal proceedings and claims arising in the ordinary course of business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is not subject to any current pending legal matters or claims and no contingency losses were accrued at either December 31, 2024 and 2023.

In May 2015, the Company entered into an operating lease for 30,376 square feet of laboratory and office facilities in South San Francisco, California. In April 2018, the Company amended the lease agreement to include an additional 6,378 square feet of laboratory and office space increasing the total leased premises to 36,754 square feet. The lease amendment extended the lease term to November 2026 and contained scheduled rent increases over the lease term and an option for the Company to extend the lease for an additional five-year term.

In November 2022, the Company entered into an operating lease for 13,232 square feet of office facilities in South San Francisco, California, which expires in July 2025. The lease agreement contained an option to extend the lease for an additional six-month term.

Cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2024 was $2.9 million and was included in net cash used in operating activities in the Company’s statements of cash flows.

As of December 31, 2024, the weighted-average remaining lease term and discount rate for the Company’s operating leases was 1.72 years and 8.21%, respectively.

The following table summarizes maturities of operating lease liabilities as of December 31, 2024 (in thousands):


2025	$	2,662
2026		2,137
Thereafter		—
Total future undiscounted lease payments		4,799
Less: Imputed interest		(307	)
Total Lease Liabilities	$	4,492

The following table summarizes the supplemental balance sheet information related to operating leases at December 31, 2024 (in thousands):


Operating leases	December 31,		December 31,
	2024		2023
Operating lease right-of-use assets	$	3,333	$	5,228

Operating lease liabilities, current		2,422		2,448
Operating lease liabilities, non-current		2,070		4,458
Total operating lease liabilities	$	4,492	$	6,906

For each of the years ended December 31, 2024 and 2023, the Company incurred $2.3 million of lease expense included in operating expenses in the statement of operations in relation to operating leases. Variable lease expense was insignificant for the years ended December 31, 2024 and 2023. Rent expense was $3.1 million and $2.9 million in the years ended December 31, 2024 and 2023, respectively. The Company does not have any financing lease agreements as of December 31, 2024.